Swedish-based global aerospace and defence company
Saab
is the latest global player to seek a slice of a $100 billion bonanza of Australian naval submarine and ship projects.

Saab president and chief executive officer
Hakan Buskhe
said the ­company was keen to supply combat systems for a new class of Royal Australian Navy frigates. But more immediately Saab is also keen to bid for systems integration work on the $35 billion build of up to 12 submarines to replace the troubled Collins class vessels.

After a period in which the previous Labor government slashed defence spending by almost $25 billion over four years, Prime Minister
Tony Abbott
has signalled he will boost defence spending to 2 per cent of GDP within 10 years representing an additional $3.5 billion in spending a year on ­average.

Saab has already had success in Australia supplying combat systems for the Navy’s Anzac class frigates and has won a lucrative contract only a week ago to supply combat systems for a new class Thai Navy frigate.

The combat system is the operational heart of a modern warfare vessel and controls command, communications, sensor and weapons systems. Installation and integration work can be worth as much as $1 billion for each vessel.

“At a time when many countries defence budgets are squeezed we see Australia as not only a vital market in its own right but supporting our work throughout the Asia Pacific,’’ Mr Buskhe told AFR Weekend.

“A lot of the work on those Royal Thai Navy vessels will be substantially done out of our Australian operations.’’

Saab,which has an annual turnover of US$24 billion, employs 13,000 people in 32 countries including 300 in ­Australia. It is one of the globe’s most export oriented defence companies securing some 73 per cent of sales outside Sweden.

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“We want to be part of the solution for the Australian government on the frigate project [but also the future submarine project],’’ Mr Buskhe added.

“Though defence budgets are under strong pressure this means procurement officers around the globe look for more affordable solutions and one area where Saab excels in solving problems and providing affordable solutions."

The combat management and radar systems for the Royal Thai Navy frigates will be supplied by Saab and Daewoo Shipbuilding Marine Engineering of Korea.

The Coalition government wants to build a fleet of 12 diesel powered submarines, larger, and with greater endurance and firepower, than the current Collins class. The government is also considering building a fourth air warfare destroyer, new refuelling ships, patrol boats and in the longer term frigates and offshore patrol vessels to assure the future of a domestic shipbuilding industry.

Expressions of interest in designs, engines and other systems for new submarines have already been sought from Spain’s Navantia, Germany’s HDW and Siemens, Sweden’s Kockums, Britain’s BAE Systems and Babcock, France’s DCNS, US giants Lockheed Martin, General Dynamics Electric Boat, Northrop Grumman and Adelaide based ASC.